GLOBAL MARKETS-Wall Street retreats, oil advances as Senate considers expanded stimulus

* All three major U.S. stock indexes down
* European stocks close at 10-month high
* Crude prices rise on hopes for demand rebound
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Updates to late afternoon)
By Stephen Culp
NEW YORK, Dec 29 (Reuters) - Wall Street reversed early
gains on Tuesday, backing down from the previous session's
record closing highs, while crude oil gained ground as investors
looked to Washington for signs that an enhanced stimulus package
would pass a Senate vote.
All three major U.S. stock indexes oscillated amid light
trading volume, but were most recently lower as market
participants balanced near-term challenges with longer-term
hopes for economic recovery and a return to healthy demand.
"The plan that was originally signed is baked in," said
Joseph Sroka, chief investment officer at NovaPoint in Atlanta.
"The question as to whether the bigger individual checks get
passed is up for debate."
"The more speculative parts of the market are a little more
red than the market as a whole," Sroka added. "It may mean that
it's time to put 2020 in the review mirror and take some money
off the table. It's been a long year and there's a lot of tired
investors out there."
The U.S. House of Representatives voted on Monday to meet
President Donald Trump's demand for $2,000 direct payments to
Americans as part of the recently signed fiscal relief bill,
sending the measure to the Republican-controlled Senate.
Senate Majority Leader Mitch McConnell blocked an effort to
approve the direct payments by unanimous consent, but said the
chamber would address the increased stimulus checks this week.
Vaccine trials and distribution gather momentum around the
world as global COVID-19 cases https://apac1.apps.cp.thomsonreuters.com/cms/?navid=1592404098
surpass 81 million and deaths approach 1.8 million. In the
United States, there have been more than 19 million cumulative
cases and nearly 335,000 deaths. The Dow Jones Industrial Average .DJI fell 95.25 points,
or 0.31%, to 30,308.72, the S&P 500 .SPX lost 9.84 points, or
0.26%, to 3,725.52 and the Nasdaq Composite .IXIC dropped
61.98 points, or 0.48%, to 12,837.45.
European stocks extended their year-end rally to close at a
10-month high in anticipation of fresh stimulus and as the
European Union vaccination program got under way. The pan-European STOXX 600 index .STOXX rose 0.76% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.29%.
Emerging market stocks rose 1.13%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.09%
higher, while Japan's Nikkei .N225 rose 2.66%.
Crude prices advanced on hopes that pandemic aid could boost
demand and spur economic growth. U.S. crude CLcv1 rose 0.8% to settle at $48 per barrel and
Brent LCOcv1 settled at $51.09 per barrel, up 0.45% on the
day.
U.S. Treasury yields were little changed in choppy trading,
and the yield curve was slightly steeper as investors awaited
the Senate's response to the higher stimulus check approved by
the House. Benchmark 10-year notes US10YT=RR last fell 1/32 in price
to yield 0.9347%, from 0.933% late on Monday.
The 30-year bond US30YT=RR last fell 3/32 in price to
yield 1.673%, from 1.669% late on Monday.
The dollar dipped to a two-year low against the euro and
riskier currencies gained ground on the Brexit trade deal and
prospects of increased fiscal aid. The dollar index .DXY fell 0.38%, with the euro EUR= up
0.29% to $1.225.
The Japanese yen strengthened 0.26% versus the greenback at
103.54 per dollar, while Sterling GBP= was last trading at
$1.3493, up 0.33% on the day.
Gold prices advanced as the dropping dollar bolstered the
safe-haven metal's appeal ahead of the Senate's vote on heftier
stimulus payments. Spot gold XAU= added 0.4% to $1,877.76 an ounce.

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MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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